What is Cryptocurrency Mining and How Cryptocurrency works

At first, many people were skeptical about cryptocurrency but as the online monetary system grows individuals and companies alike are showing serious interest. Cryptocurrency was modified just recently from cryptography; a process used to transfer information during World War 1. As such, all transfers and purchases are tracked and verified by the internet.

Cryptocurrency is especially ideal for most people because it translates to a worldwide currency, which makes transactions easier as opposed to the energy-sapping paper money system. Here is some of the cryptocurrency currently on the market starting with the most famous one, Bitcoin.

• Bitcoin

Bitcoin was very well advertised a few years ago, and some people accepted this new age form of currency exchange. However, it wasn’t until recently that the value of a single Bitcoin rose exponentially handsomely rewarding those who had put faith in the cryptocurrency at the start of the franchise. Bitcoins are stored in digital wallets, which are almost similar to PayPal regarding money storing and use.

However, Bitcoin isn’t as new to cryptocurrency as some of the other forms of online banking on our list seeing it was introduced to the world in 2009. Nonetheless, a Japanese programmer using the name Satoshi Nakamoto made sure the real-world market noticed his invention.

• Ethereum

Ethereum is somewhat similar to Bitcoin seeing you can use it to pay for online services and transactions as a developer. Not to mention, both companies share the same digital handprints, Blockchain Technology. However, being an open software, Ethereum gives its users the ability to deploy and build decentralized Apps while Bitcoin only allows the user to transfer cash electronically in the form of Bitcoins.

Still, you can exchange money, property, shares, content, or any valuable item you wish using Ethereum thanks to a unique computer code called smart contract, which also helps in decentralizing specific services and Apps.

• Litecoin

Two tears after Bitcoin hit the limelight (2011), Lee, an MIT graduate, decided to make a cryptocurrency that was more accessible to the general public and called it Litecoin. Of all the cryptocurrency invented after Bitcoin, none has matched or come as close to its annual market worth like Litecoin. People have even gone as far as nicknaming Litecoin the silver version of the golden Bitcoin.

Lee also designed Litecoin to create 84 million units. Considering Bitcoin is designed to produce 21 million units which are estimated to be finished by 2040, this cryptocurrency will enjoy some golden years in the future if its economy keeps scaling.

• Bitcoin Cash

Compared to all the other forms of cryptocurrency discussed above, Bitcoin Cash is the fastest and more straightforward to use. In the beginning, Bitcoin started as a peer-to-peer electronic cash franchise, but that name never lived to its full expectation until the invention of Bitcoin cash. Every Bitcoin holder from block 478558 is also a member of Bitcoin Cash, a movement looking to make sound money accessible across the world.

Bitcoin Cash has included features not found in the original Bitcoin such as on chain scalability, transaction signatures, decentralized development, and emergency difficulty adjustment.

Conclusion

Most people are currently developing more forms of cryptocurrency though the five discussed above remain the best examples. It might be a little late to invest and earn millions using some of the older forms of cryptocurrency such as Bitcoin seeing how expensive they are, but you can also opt for the other options and transfer currency safely online.